I'm In Contract - When Do I Own My Home?

When I make an offer on a home, when do I own it? According
to Zillow, 47% of buyers think they own the home when they sign the purchase
contract. In fact, the signing of the purchase contract and ratification (when
all parties have signed and agreed) starts the transaction clock ticking and
it's not until inspections have been done, appraisal approved, loan
documents signed, loan is funded and
transaction is recorded at the county recorders office by title that you
finally own the home. You will receive that magical call from your Realtor, "We
are on record".

In truth, there are a lot of steps and hoops to jump through
once the purchase contract is signed. If you are fortunate enough to pay for a
property with cash you can shorten it considerable. Cash removes the lending
& possibly the appraisal arm and can shave 2 weeks or more off the close of
escrow.

A purchase contract doesn't only consist of an offer amount
but several terms and criteria - all of which are negotiable. For example: # of
days to close escrow; who will pay the home warranty; time frame for
inspections, appraisal, and loan approval, etc.
The careful consideration of what you ask for will make or break the
acceptance of your offer.

New laws and safeguards have been added to the purchase
contract/real estate law to protect buyers and sellers. There are built in
"outs" in the contract that allow the buyer to walk away with deposit in tact
or seller to cancel. If a party does not satisfy a term of the contract in the
proper timeframe the contract can be canceled.

The first hurdle to get over is the inspection contingency
period. This is when the buyer investigates the property, performs inspections
and reviews reports and documents until they are satisfied with the condition
of the property. If a deal is going to fall apart, that doesn't have to do with
the financing, this is the place. Hence this time can be stressful for all
parties.

The next hurdle is appraisal and loan approval. Working with
a reputable lender/mortgage broker is crucial in order to keep the deal moving
forward. A good lender will do the bulk of the approval up front, ask the right
questions and collect the necessary documentation so there aren't' any deal
killing surprises during the transaction. "Oh...you needed to know I have income
property?" YES! Tell your lender everything and anything about your financial
picture.

I have heard tales of transaction files from the past that
consisted of just a few pieces of paper! Your Realtor
is working every day during the 15 or 20 or 30 days it takes from signing to
COE.

It is 100's of pages thick and includes seller disclosures,
standard disclosures, county and city specific disclosures, inspection reports,
appraisal (buying side), Offer paperwork, conversation log and emails and much,
much more.

Attempting to purchase a home on your own can be daunting
but licensed Realtors understand the process and flow and necessary paperwork
to help you navigate through the transaction.

So take that first step and get into contract but put that
celebration on hold until you get the call from your Realtor and she says, "We
are on Record'!